In the nature of a substitute.

The amendment introduces the Guiding and Establishing National Innovation for U.S. Stablecoins Act or the GENIUS Act. The primary purpose of this legislation is to establish a clear regulatory framework for the issuance, regulation, and supervision of payment stablecoins within the United States.

Specifically, the amendment aims to change and add the following to the bill:

• Restricts the issuance of payment stablecoins in the United States exclusively to permitted payment stablecoin issuers, which include approved subsidiaries of insured depository institutions, Federal qualified payment stablecoin issuers, and State qualified payment stablecoin issuers.

• Requires stablecoin issuers to maintain identifiable reserves backed on at least a 1-to-1 basis with specific low-risk assets, such as U.S. coins and currency, demand deposits, and short-term Treasury bills.

• Prohibits stablecoin issuers from paying interest or yield to holders solely in connection with holding, using, or retaining the payment stablecoin.

• Subjects permitted payment stablecoin issuers to the Bank Secrecy Act and federal economic sanctions laws to prevent money laundering and terrorist financing.

• Clarifies that payment stablecoins issued by permitted issuers are not securities or commodities, and explicitly bars convicted felons from serving as officers or directors of a stablecoin issuer.